Converting a house into high-end holiday let

bridging holiday let

This case study looks at a developer who wanted to purchase a £1m house at auction and convert it into a high-end holiday let with a pool.

Using a Bridging Loan, the developer was able to borrow £600k over a six-month term, with an exit strategy of refinancing the property at the end of the refurb using a commercial mortgage at 70% LTV.

This gave the developer the funding needed to purchase the property at auction, plus £100k for the refurbishment and installation of the pool.

Following the six-month refurbishment of the property, the developer was able to go through with the exit strategy and refinance the property using a commercial mortgage at 70% LTV.

Purchase price (at auction): £1m

Cost of refurbishment: £100k

Loan Duration: 6 months

Amount Borrowed  (Bridging Loan): £600k

Exit (sale of the property): Remortgage at 70% LTV